South Korea's Oct. 1-20 exports hit $61.6B, nearly double last year's level, as $1tr annual target comes into view

South Korea's exports surpassed $60 billion in the first 20 days of October, driven by a semiconductor boom, reaching nearly double the level recorded in the same period last year. With cumulative annual exports approaching $880 billion, the country is now within striking distance of crossing the $1 trillion mark for the first time in history — potentially as early as next month.

According to the Korea Customs Service, exports from Oct. 1 to 20 came to $61.6 billion on a customs-clearance basis, a 105.4 percent increase from the same period a year earlier. The figure is the highest ever recorded for that 20-day window.

The period had 13 working days, 2.5 more than the same stretch last year, when the Chuseok holiday fell during that time. Adjusting for the difference, the daily average export figure rose 65.9 percent to $4.74 billion — also an all-time high for the Oct. 1-20 period, surpassing the previous record of $4.6 billion set in September.

Cumulative exports through Tuesday stood at $876.3 billion. If the daily average holds at around $4.5 billion for the remainder of the year, total exports could breach $1 trillion sometime next month. That milestone would require monthly exports to average roughly $61.8 billion in the fourth quarter.

South Korea's annual exports crossed $100 billion in 1995, $200 billion in 2004, $300 billion in 2006, $400 billion in 2008, $500 billion in 2011 and $600 billion in 2018. Last year, the country surpassed $700 billion for the first time.

This year, exports have set a new monthly record for the same month in every month since January. In June, monthly exports topped $100 billion for the first time ever. Last month's exports came to $120.9 billion.

Semiconductors are at the center of the export surge. Semiconductor exports from Oct. 1 to 20 jumped 222.5 percent year-on-year to $27.5 billion, the highest ever for that period. Semiconductors' share of total exports rose 16.2 percentage points from a year ago to 44.7 percent.

The gains reflect a combination of rising demand for memory chips driven by the spread of AI, higher export volumes and rising product prices. The price of DDR5 16Gb chips rose consistently from $37.50 in May to $40 in June, $45 in July, $46.50 in August and $48 in September. Rising NAND prices also supported the strong export performance.

Other categories also posted gains, including petroleum products (up 68.3 percent), passenger vehicles (up 40.9 percent) and computer peripherals (up 424.0 percent).

By destination, exports rose across all major markets: China (up 154.4 percent), the United States (up 154.9 percent), Vietnam (up 74.6 percent), the EU (up 78.2 percent) and Taiwan (up 36.7 percent). The top three destinations — China, the US and Vietnam — together accounted for 52.7 percent of total exports.

South Korea's trade surplus with the US is on track to exceed $100 billion this year for the first time in history. The surplus with the US in the first nine months of the year reached $84.7 billion — already $29.1 billion more than the previous full-year record of $55.6 billion set in 2024, and with a full quarter still remaining.

The widening surplus, however, risks reigniting trade pressure from Washington. In April last year, the Donald Trump administration, dissatisfied with South Korea's trade surplus, announced a 25 percent reciprocal tariff on Korean goods, before lowering it to 15 percent in July after South Korea pledged $350 billion in investment in the US.

Imports from Oct. 1 to 20 rose 42.8 percent to $47.1 billion. By category, semiconductors (up 78.4 percent), crude oil (up 42.9 percent), gas (up 112.4 percent) and machinery (up 43.7 percent) all increased. Energy imports — covering crude oil, gas and coal — rose 53.5 percent. Imports from Russia climbed 64.8 percent, driven by gas and crude oil, the Korea Customs Service said.

By country, imports rose from China (up 71.1 percent), the US (up 12.9 percent), the EU (up 34.6 percent), Taiwan (up 84.2 percent) and Japan (up 45.6 percent).

With exports outpacing imports, the trade balance for Oct. 1 to 20 posted a surplus of $14.5 billion.